We are hoping to come over to Spain in the next couple of weeks to hand the keys back on a property we own after successfully negociating a deal with the bank.

Can anyone help with these questions please.

1) When handing the keys back can the bank insist on keeping our furnishings in the house. We had a valuation on the house but I did not think this would have included furniture etc. Did the mortgage valuation include the furniture? If not, you can keep the furniture out of this deal.

2) How do we go about ending our contract with electric and water companies. I would advise you to send an order to both instructing you to stop directing the payments to your bank account as soon as the dation deed is signed.

3) Do we need to go to the town council to inform them we are no longer the owners when the keys have been handed over. You need to unregister for the IBI tax.

Recently I had published an article on a related matter. The bank reposessed whilst the 'owners' were in the UK. When they returned to their former they were unable to gain access - and their belongings; furniture etc were inside. Good luck with the outcome.

You cannot just hand back the keys you must ensure the bank sign for the house in return for cancelling the mortgage at the Notary, only then will you be free

Be warned, spanish banks will do everything they can to try and trick you so make sure you are 100% clear that they have cancelled the entire mortgage and any other debts that may arise from the property in the dacion document.

Spoain is not a country to be trusted in any way at all, its it not a country of honour or with any ral beliefe in citizens rights and will say anything to get money from you but will not keep its end of the deal

Sorry if I offend anyone but 12 years of experience of this excuse for an EU country (in reality a third world corrupt dictatorship pretending to be a democracy) have brought me to this conclusion

Yes, we perform an acceptable number of these transactions every month ( 2 to 3). It is not an automatic process but good defence and persistence works

Legal tip 892. Hand keys back to the Bank VII . Out of Court sales-auctions25 January 2013 @ 12:44

Government will finish in coming days a substantial reform of mortgage market in order to protect borrowers from the wave of foreclosures of last years.

The idea is "to improve the position of the debtor", dramatically lowering interest for late payment of mortgages on first residences, which may not exceed the legal interest (now at 4%) plus a surcharge of two points percentage. That is, at most 6%, compared to the average 20% that is being currently charged. There will also be time limit as interest will be guaranteed with the house just for three years (against current five years).

This change has been encouraged by 47 dean judges in Spain

In addition, the proposal currently includes provision 115 or Mortgage Act to be suppressed: legal right of the mortgagee to require the extension of the mortgage to debtor in order to secure interest due and unpaid.

The proposal also includes an out of Court procedure for the sale of the propertywhen the debtor defaulted mortgage.

How? At any time prior to the conclusion of the auction, the debtor may bring a buyer to Court paying at least the 70% of the appraised value for auction of the property.Once the Bank is notified, this will have "a period of 20 days to either bring a buyer paying a higher amount or repossessing the estate at that price putting an end to the procedure” Auction valuation presented by the debtor prevails over that made by the Bank.

Doors opened for the debtor to sell the house he cannot keep paying: this way, a private sale or private auction is possible. Anyone paying 70% of this valuation needs to be accepted by the Bank.